Baltic Classifieds Group Plc · LSE:BCG
Baltic Classifieds — H1 2024 Earnings Presentation
30 slides from Baltic Classifieds's earnings presentation, December 2023
Slide 1: Half year results presentation
Half year results presentation Six months ended 31 October 2023
Slide 2: Financial highlights
Financial highlights +20% +22% 78% +23% Revenue up to €35.8m Autos +28% (H1 2023: €29.8m) Real Estate +20% Adjusted operating EBITDA up to €27.8m 1 EBITDA margin 1 Jobs & Services +18% profit2 up to €27.5m (H1 2023: €22.8m) (H1 2023: 77%) and Generalist +9% (H1 2023: €22.4m) +22% 99% +21% 0.7x +25%
Slide 3: Operational highlights
Operational highlights Significant leadership position5 against nearest competitors B2C customers: C2C ads: maintained for all our major businesses (times) Six months ended 31 October 2023 is shown as H1 2024 Auto2: +37% Auto: +5% 20226 2023 H1 2024 Real Estate: +20% Real Estate: 0% Services3: +40%
Slide 4: Financials
Financials
Slide 5: Robust revenue growth underpinned by strength in the core business
Robust revenue growth underpinned by strength in the core business The growth came from the core classifieds revenue streams, B2C and C2C, which represent 90% of BCG revenue and grew 25% and 19% respectively 18% 38% Revenue (million €) Diversified revenue streams Six months ended 31 October 2023 is
Slide 6: Resilient despite macro and geopolitical uncertainty
Resilient despite macro and geopolitical uncertainty Revenue (million €) Our business, together with Baltic economies, continue to 8 M&A: 1st wave of 2022 Russian demonstrate resilience to multiple recent and ongoing 7 Auto24 Covid-19 invasion of Ukraine adverse shocks 6 Our Company, as well as the
Slide 7: Continued cost discipline driving operating leverage
Continued cost discipline driving operating leverage Operating costs (million €) Six months ended 31 October 2023 is shown as H1 2024 +14% People costs: 8.0 • Investment into our people increased 19% to €5.3m (H1 2023: €4.4m) 7.0 • Increase in people costs was driven by more people in the team, annu
Slide 8: EBITDA with 78% margin
EBITDA with 78% margin EBITDA1 (million €) Net cash inflow from operating activities (million €) Six months ended 31 October 2023 is shown as H1 2024 Six months ended 31 October 2023 Cash conversion2 99% Growth in cash generated from operations 21% EBITDA margin1 EBITDA margin 77% 78% YoY 0.3 29.1 +
Slide 9: Adjusted operating profit continues to track closely to EBITDA
Adjusted operating profit continues to track closely to EBITDA H1 2024 (€ millions) H1 2023 (€ millions) Change Revenue 35.8 29.8 20% Operating cost excluding depreciation and amortisation (D&A) (8.0) (7.0) 14% EBITDA1 27.8 22.8 22% EBITDA margin1 % 78% 77% 1% pt D&A (8.4) (8.5) (1%) Operating profi
Slide 10: Debt and leverage continues to be reduced
Debt and leverage continues to be reduced Net debt1 bridge (million €) Six months ended 31 October 2023 Leverage2 Leverage 1.0x 0.7x 45.3 7.1 0.3 36.9 At the beginning of H1 2024: • Loan balance of €70 million 8.4 • Leverage of 1.0x During H1 2024: (24.2) • Voluntarily repaid €15 million At the end
Slide 11: Capital allocation priorities remain unchanged
Capital allocation priorities remain unchanged M&A Dividends Debt repayment We will continue to assess We intend to return 1/3 of Adjusted and share value-creating opportunities net income1 each year via dividend Own cash is most likely source Interim (1/3) and final (2/3) buy-backs dividend of fina
Slide 12: Strategic Progress
BALTIC CLASSIFIEDS GROUP
Slide 13: Auto revenue up 28%
Auto revenue up 28% Through growth in the number of listings, improved yield and rising transaction values Average auto price and transactions1 C2C KPIs 263 YoY 265 YoY YoY 271 YoY YoY 21.6 YoY 259 20.2 Growth Growth Growth Transactions Growth 18.7 Growth Growth Monthly revenue (thousand) per active
Slide 14: Real Estate revenue up 20%
Real Estate revenue up 20% Through growth in the number of listings, improved yield and rising transaction values Average apartment price1 and transactions C2C KPIs YoY 149 YoY YoY YoY YoY 23.3 YoY 22.7 122 Growth Growth Growth Transactions Growth 19.5 Growth Growth 120 Monthly revenue 105 (thousand
Slide 15: Jobs & Services revenue up 18%
Jobs & Services revenue up 18% Through growth in the number of customers, improved yield and significant growth of Services Average monthly gross wage1 C2C KPIs: Services and average unemployment rate2 YoY YoY YoY 22.6 Growth Growth 21.0 Growth YoY YoY YoY Monthly revenue 2.0 +37% +113% +8% per acti
Slide 16: Generalist revenue up 9%
Generalist revenue up 9% Through growing number of listings and yield improvement including value-based pricing E-commerce market growth1 in Lithuania and Estonia (€bn) CAGR CAGR 2019 - 2022 2022 - 2027 Lithuania Estonia 1,626 +26% +8% 1,489 1,562 1,289 1,396 1,086 996 469 542 712 +32% +10% 317 382
Slide 17: Product developments in H1 2024
Product developments in H1 2024 In Autoplius.lt we launched data analysis tool which allows business In Aruodas.lt and KV.ee we introduced a new prominance package for customers to analyse the performance of their listings and business clients. This package includes bump-ups of listing which benchma
Slide 18: Product developments in H1 2024
Product developments in H1 2024 Paslaugos.lt introduced the option to sign a service agreement between the service provider and the customer within the platform. This is a convenient tool for users and a valuable data source for the platform. In CVbankas.lt we developed tools to simplify the selecti
Slide 19: Outlook
BALTIC CLASSIFIEDS GROUP
Slide 20: Macroeconomic overview
Macroeconomic overview Historical growth exceeding Cooldown, not a crisis Strong credit profile the EU average growth Real GDP per capita GDP Public sector debt Lithuania: 4.9% Lithuania: (0.2)% Lithuania: 38.3% CAGR 2000-20221: YoY 20231F: % of GDP 20231F: Estonia: 3.6% Estonia: (2.5)% Estonia: 19.
Slide 21: Outlook
Outlook The Board remains confident in the outlook for the second half of the year, underpinned by the pricing and packaging changes that have already been successfully implemented and the continuing momentum across our business. The Board is upgrading guidance for the full year 2024 to a range of 1
Slide 22: Appendices
BALTIC CLASSIFIEDS WU croup ee
Slide 23: KPIs and revenue by business line
KPIs and revenue by business line H1 2024 H1 2023 YoY B2C - monthly number of dealers 3,749 3,577 5% Auto B2C - monthly ARPU (€)1 271 207 31% C2C - monthly number of active ads2 34,695 25,379 37% C2C - monthly revenue per active ad (€)2 20 22 (6%) Total Auto revenue, € million 13.7 10.7 28% B2C - mo
Slide 24: Consolidated statement of profit or loss and other comprehensive income
Consolidated statement of profit or loss and other comprehensive income H1 2024 H1 2023 2023 (€ millions) (€ millions) (€ millions) Revenue 35.8 29.8 60.8 Other income 0.0 0.0 0.0 Expenses (16.4) (15.5) (31.8) Operating profit 19.4 14.3 29.1 Finance income 0.1 0.0 0.0 Finance expenses (1.9) (1.1) (2
Slide 25: Consolidated statement of financial position
Consolidated statement of financial position H1 2024 (€ millions) H1 2023 (€ millions) 2023 (€ millions) Assets Property, plant and equipment 0.6 0.5 0.5 Intangible assets and goodwill 377.5 393.9 385.6 Right-of-use assets 0.8 0.3 0.9 Deferred tax asset 0.2 - 0.2 Other non-current receivables - 0.0
Slide 26: Consolidated statement of cash flows
Consolidated statement of cash flows H1 2024 (€ millions) H1 2023 (€ millions) 2023 (€ millions) Cash flows from operating activities Profit for the period 15.3 11.5 23.2 Adjustments for: Depreciation and amortisation 8.4 8.5 17.0 Amortisation of up-front fee and borrowing costs - 0.2 - Impairment l
Slide 27: Consolidated statement of cash flows (cont.)
Consolidated statement of cash flows (cont.) H1 2024 (€ millions) H1 2023 (€ millions) 2023 (€ millions) Cash flows from investing activities Acquisition of intangible assets and property, plant and equipment (0.2) (0.2) (0.3) Proceeds from sale of property, plant and equipment 0.0 - 0.0 Acquisition
Slide 28: We are the clear leader
We are the clear leader Lead over closest competitor Go-to destination for the public Relative Market Share1 vs. Nearest Competitor, H1 2024 Monthly Visits per Capita8, calendar year 2020 Lithuania Estonia Latvia 8.4 c.8x2 c.39x3 6.5 c.0.6x5 4 c.21x 4 c.17x 4 #1 in Latvia is generalist portal SS.lv
Slide 29: Monetisation journey as presented at the time of IPO
Monetisation journey as presented at the time of IPO C2C B2C Effective Cost of C2C Listing as a % of Underlying Car Value B2C Take Rates3, calendar year 2019 0.6-1.2% 5-6% 4-5% 0.4-0.6% 0.4-0.6% 0.4-0.6% 0.5-0.6% 1-3% ~0.4% Baltics1 Baltics1 B2C Take Rates3, calendar year 2019 7-9% 3-5% 2-3% Effecti
Slide 30: Thank you
BALTIC. CLASSIFIEDS GROUP ~ Thank you a Q&A?
Baltic Classifieds Group — H1 2024 Earnings Presentation on 6ix